Basic charges are the charges for generation/transmission and distribution that all customers must pay in order to retain electric service.Return to list of terms.

Basic Monthly Charge

The basic monthly charge is designed to partially cover the costs of installing and maintaining the electric system and related equipment. The charge is usually the same each month, no matter how much electricity is used.Return to list of terms.

Distribution

Distribution is the local wires, transformers, substations and other equipment used to distribute and deliver electricity from high-voltage transmission lines to consumers. Distribution charges are part of the basic charges on every customer's bill for delivering electricity from the electric distribution company to his or her home or business. These charges will vary according to how much electricity is used.Return to list of terms.

Generation (and Transmission)

Generation is the production of electricity from a power plant. Transmission is the interconnecting electric lines which move high voltage electricity from where it is produced to the point of distribution to customers. Generation/transmission charges are part of the basic charges on every customer's bill for producing electricity and transporting it from where it is produced to the point of distribution to customers. These charges depend on the terms of service between the customer and the supplier and will vary with the source of supply.Return to list of terms.

A kilowatt-hour is the basic unit of electricity for which most customers are charged. It equals the amount of electricity used by ten 100-watt light bulbs during one hour.Return to list of terms.

Non-Basic Charges

Non-basic charges are charges for any category of service not related to basic services (generation/transmission and distribution).Return to list of terms.

Purchased Power Adjustment (PPA)

A purchased power adjustment is a temporary adjustment to the energy rate charged to consumers due to an unforeseen change in wholesale power costs. The adjustment may be applied when the cost of purchased power differs from the base kilowatt-hour price calculated into our present rates. The charge will vary according to how much electricity is used. Please see Purchased Power Adjustment page for more information.Return to list of terms.

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